DMP & Mutual Support Thread - Part 8

Hopelessly_Hopeful

DaveK1971 wrote: »

No worries, cheers. I'll ring Step Change a bit later in the week once I've heard from a few more creditors. Seems odd the way some of the DMP payments have been allocated as Step Change are giving £200 a month against a standard bank loan for which the contractual payment was £140. Presume there's a good reason just not what I'd expected.

Good Luck with it

Id definately challenge that £200 loan payment as you will see more benefit chucking as much at you can against CCs rather than loans.

Most of all they need to be transparent and be able to demonstrate how they have worked out the distribution of YOUR money in the fairest way possible.

Let us know how you get on

HHX

Time_to_face_the_music

Hopelessly_Hopeful wrote: »

Hi SF


Can I just check that you know that loans and credit cards are treated differently? Loans front load the interest. CCs interest (£ monetary amount -not APR) will change each month as the balance reduces. CCCS work on the contractual amount AT THE START OF THE DMP for both so it will feel like they (loans) get more payment as a ratio to the debt than with your CC balances. For example my DMP payment for my outstanding loan balance at the start of my DMP was one of my lowest balance. The DMP payment was set at a 10th of the total balance each month. Was cleared in 10 months then that amount redistributed to the CCs

Thought I would mention as newbies often don't realise this.

Hope that helps

HHx

That is really useful HH and I didn't know about the pre-loaded interest because we don't have any loans included in our DMP.

I still can't get my head around CCCS's breakdown of payments and why they do it that way. We have a CC with a starting balance of around £10K which receives £188 month and another with a £5K start which gets an almost identical amount each month.

The £5K one is very close now to minimum payment and they are threatening us with reintroducing full interest. If they got half of the amount this wouldn't be happening

Hopelessly_Hopeful

Time_to_face_the_music wrote: »

That is really useful HH and I didn't know about the pre-loaded interest because we don't have any loans included in our DMP.

I still can't get my head around CCCS's breakdown of payments and why they do it that way. We have a CC with a starting balance of around £10K which receives £188 month and another with a £5K start which gets an almost identical amount each month.

The £5K one is very close now to minimum payment and they are threatening us with reintroducing full interest. If they got half of the amount this wouldn't be happening

I had a few oddities in mine too but I didn't realise until later into the schedule when I considered it was more futile to formally challenge without the risk of upsetting the applecart with the creditors that were on board. I think they used the 'amount you pay per month' too bluntly and used my latest payment rather than say the contractual 2% minimum etc.

Hope that helps. I learn all the time in this place!

HHx

Time_to_face_the_music

Hopelessly_Hopeful wrote: »

I learn all the time in this place!

Me too! And will be eternally grateful for the help, advice, sharing of experience, and above all support from this thread :A

Hopelessly_Hopeful

Time_to_face_the_music wrote: »

Me too! And will be eternally grateful for the help, advice, sharing of experience, and above all support from this thread :A

What's that proverb, more you learn more you teach, more you teach more you learn.:money:

And if we pick up the odd pal or twin on the way then so be it.....we all have a cross to bear!:rotfl:


HHx

Time_to_face_the_music

Hopelessly_Hopeful wrote: »

What's that proverb, more you learn more you teach, more you teach more you learn.:money:

And if we pick up the odd pal or twin on the way then so be it.....we all have a cross to bear!:rotfl:


HHx

It's a pleasure to be outgeeked by my twinny pal

TTFTM x

Growurown

I'm getting worried about you two. 'Get a room' comes to mind:eek:

Only to compare spreadsheets of course:D

Hopelessly_Hopeful

Growurown wrote: »

I'm getting worried about you two. 'Get a room' comes to mind:eek:

Only to compare spreadsheets of course:D

:rotfl::rotfl::rotfl:

Funny you should say that.... we were swapping spreadsheet tips earlier. Anything to help us at least FEEL in charge of the debt LOL.

HHx

Time_to_face_the_music

Growurown wrote: »

I'm getting worried about you two. 'Get a room' comes to mind:eek:

Only to compare spreadsheets of course:D

:rotfl:

I am now extremely proud of my HH inspired spreadsheet. :A

Just wish I hadn't stayed up so late inputting figures into it, am cream crackered now

DaveK1971

Haha, count me into spreadsheet discussions anytime!!